Marina Barata (Master's in Law)

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1. The deal

On October 8, 2021, the world woke up with the news that the OECD/G20 has agreed a two-pillar solution to address the tax challenges arising from the digitalisation of the economy, marking the first rewriting of international tax rules in a generation.

We might as well talk about a Generational Achievement.

The framework updates key elements of the century-old international tax system, which is no longer fit for purpose in a globalised and digitalised 21st century economy.  The two-pillar package – the outcome of negotiations coordinated by the OECD for much of the last decade – aims to ensure that large Multinational Enterprises[1] (MNEs) pay tax where they operate and earn profits, while adding much-needed certainty and stability to the international tax system. The proposal established a 15% global minimum tax, starting in 2023, and was designed to discourage tax-motivated profit shifting and base erosion by digital corporations that operate worldwide.

Continue reading “A tax deal for the digital age – are we ready for this?” →